SBI Q4 results: From net profit to bad loans, 10 key takeaways

State Bank of India (SBI) reported 66 per cent fall in net profit figures on 89.73 per cent rise in provisions for the quarter ended March 31, 2016.

State Bank of India (SBI) reported 66 per cent fall in net profit figures on 89.73 per cent rise in provisions for the quarter ended March 31, 2016.

State Bank of India (SBI) reported 66 per cent fall in net profit figures on 89.73 per cent rise in provisions for the quarter ended March 31, 2016.

Below are top 10 key takeaways from SBI Q4 results.

Net Profit: Net Profit declined by 66.23 per cent from Rs 3,742 crore in Q4FY15 to Rs 1,264 crore in Q4FY16. Bank has recognised the provisioning impact in line with RBI’s Asset Quality Review as well as in respect of other weak accounts to proactively address possible future requirements.

Provisions: Net profit of the company slid after the country’s largest lender reported 89.73 per cent jump in provisions to Rs 13,174.05 crore in the quarter under review as against Rs 6,943.31 crore in the corresponging quarter a year ago.

Operating profit: Operating profit of SBI increased by 11.22 per cent from Rs 12,760 crore in Q4FY15 to Rs 14,192 crores in Q4FY16.

Net NPAs: Net non-performing asets (NPA) or bad loans as a percentage of net advances stood at 3.81 per cent during the last quarter of 2015-16, against 2.12 per cent year ago. Net NPA of the company was at 2.89 per cent in the sequential quarter ended December 2015.

Staff expenses: Staff expenses increased 5.73 per cent year-on-year to Rs 6,943 crores for the quarter under review from Rs 6,567 crores in the same quarter ended March 31, 2015.

Operating expenses: Operating expenditure of the country’s largest lender climbed 12.68 per cent yoy to Rs 11794 crore from Rs 10467 crore. Taking into account write back of Rs 416 crore in depreciation due to change in methodology in Q4FY15, increase in Operating expenses would have been lower at 8.37 per cent.

Gross NPA: Gross NPA went up by 225 bps at 6.50 per cent in FY 16 as against 4.25 per cent in FY15.

Net Impaired Asset Ratio: The ratio (Net NPA+ Net Std Restructured) increased marginally from 6.18 per cent to 6.40 per cent. Over and above the loan loss provisions held on NPAs, the bank now have Rs 3,383 crore as additional provision.

CAR: Capital Adequacy Ratio (CAR) under Basel III improved to 13.12 per cent in Mar 16 from 12 per cent in Mar 15. Revaluation of Real Estate Assets is yet to be taken in books.